Japan’s largest steelmaker Nippon Steel has decided to issue unsecured straight corporate green bond in the Japanese market through a public offering and filed an Amended Shelf Registration Statement for the Issuance of the Green Bond with the Kanto Local Finance Bureau on 9 February 2023. The proceeds of this issuance will be used to finance production facilities, research and development expenses, and other related expenditures for CRNO electrical steel sheets for eco-friendly car motors, which is part of the advanced products and technical solutions that contribute to reducing CO2 emissions in NSCarbolexTM Solution.The world is rapidly moving toward decarbonization, and regulations for CO2 emissions and average fuel economy for vehicles have been tightened. Amid that environment, demand for eco-friendly cars such as EVs is accelerating and, with regard to CRNO electrical steel sheets used in the core of eco-friendly cars, the need for higher-grade NO electrical steel sheets with less energy loss is anticipated to further increase.Nippon Steel was the first company to develop high-grade materials that are required to meet the contradictory characteristics of low iron loss, high magnetic flux density, and high strength, and has been steadily supplying them for eco-friendly cars for many years. By November 2021, we had already decided to invest a total of JPY 123 billion in facilities to improve the capacity and quality of electrical steel sheets in the Hirohata Area of Setouchi Works and the Yawata Area of Kyushu Works and have been proceeding with construction. In the first half of fiscal 2024, production capacity for electrical steel sheets is expected to increase 1.5 times from the current level, and production of high-grade electrical steel sheets, in particular, is expected to increase 3.5 times.